Ask if you can get renegotiate your locked rate (which seems high).
You can and should (even at this point in the loan process) try to get the broker to give you a better deal than this.
You should be getting a good faith estimate on closing costs from your lender. You are free to shop around for better prices on closing costs, as they do vary greatly!
These fees can be changed the other costs are set.
broker credit report- 35 $25.00 is average
broker processing fee-500 Okay
broker loan fee-1,760 In todays market should be $1,100.00
broker administration fee-595 Okay
broker application fee-595 Padding their pockets.
I have a feeling the lender is getting paid a Yield Spread Premium by giving you a Rate of 5.875%
Tell the lender that you want to buy the rate down by one point. Don't listen to there excuse, if you discount the rate, they have to give you below par pricing. Even if the loan is locked you can buy your rate lower. It will also lesson the amount they can charge. I think this loan will get section 32 to $5280.00
I used to be in lending and occasionally still assist people with questions on this very same thing.
The fees are reasonable EXCEPT for the broker admin fee and broker application fee which in my old office we would have called junk fees and we never charged them The other fee that seems a little high is the title insurance especially for such a small purchase amount. Your lender may have estimated a bit high just to be on the safe side. I also don't see impounds for your taxes...are you doing that or paying your taxes on your own? Just don't want you to get hit with that if you weren't planning on it.
And IMHO that rate seems a bit high, but you could have been locked in during the last small spike in interest rates. Not sure when you are supposed to close but if you have time you may indeed want to check what another lender may charge. BUT I recommend you speak to your lender and have him/her explain this in detail to you.
Also be advised that since HVCC was implemented, moving your appraisal to another lender won't be an option to my understanding so you would incur the additional expense of another appraisal if you did go to another lender.
Hopefully you can work it out with your current lender and reach a satisfactory agreement.
All my best,
I used to be a Loan Officer for a Mortgage Broker. If you are paying discount points to buy a lower mortgage rate, that is one thing, but $7400 seems steep. I can email you some Lender Contacts. Who do you bank with? Is this home purchase a non-distressed sale, or an REO, or Short Sale. If you are doing Conventional Financing use Provident Funding, or Fremont Bank. For FHA Flagstar is good. Even Chase, Wells Fargo, Bank of America, and Propsect Mortage offer good rates with competitive lender fees. Unless your credit is marginal, you may consider switching lenders.
tax service- 84
flood check fee-26
broker credit report- 35
broker processing fee-500
broker loan fee-1,760
broker administration fee-595
broker application fee-595
hazard insurance premium-264
30 days interest at $14.16 a day-424
closing or escrow fee-505
for a total of $7,288 the loan is unconventional uninsured for 30 years at a 5.875% interest rate